The Hidden Costs: Uncontrolled Betting and its Impact on the US Society

The world of sports betting has taken the United States by storm since restrictions on gambling were eased in 2018.

The world of sports betting has taken the United States by storm since restrictions on gambling were eased in 2018. With an astonishing $245 billion already spent on wagers, it's clear that Americans have developed a fascination with the thrill of chance. This surge in popularity has prompted many young individuals to seek help from organizations like Gamblers Anonymous, especially after the US Supreme Court legalized free sports betting in 2018. Prior to this landmark decision, only those residing in Nevada or a few exempt states had access to legal sports betting. However, since then, sports betting has evolved into a thriving tech industry projected to generate over $12 billion in revenue by 2022, permeating American cultural life through extensive advertising.

Yet, behind the explosive growth of online betting lies an alarming consequence. A study conducted in New Jersey, the first state to approve sports betting and online gaming, revealed that 6% of respondents were gambling addicts, while up to 20% experienced issues related to sports betting. A separate study in Pennsylvania, one of seven jurisdictions that enable online betting, found that 36.7% of online bettors encountered problems with their gambling habits in 2022. The National Council on Gambling helpline witnessed a 21% increase in year-on-year calls and texts, exceeding 30,000 in March alone. Shockingly, out of the 25 jurisdictions regulating online sports betting in the US, 20 have no restrictions on credit card betting, and only three impose mandatory deposit or betting limits. Furthermore, four states lack statewide self-exclusion programs, while five require players to self-exclude from betting websites.

Facing the consequences of this situation, lawmakers in at least nine states, including New York and New Jersey, have proposed or passed bills this year aimed at mitigating the harm associated with sports betting. Proposed measures range from cracking down on partnerships between betting companies and universities to banning the mention of free bets and bonuses in gambling advertisements. The liberalization of gambling laws in the UK drastically transformed it into the world's largest regulated online gambling market. However, the rise of gambling-related problems led to stricter regulations. The US has now surpassed the UK as the largest regulated online gambling market, yet the industry risks repeating the same mistakes witnessed across the pond.

Currently, the US lacks significant intervention methods for individuals struggling with gambling addiction. Instead, many turn to groups like Gamblers Anonymous (GA) for support. Nationwide, over 1,000 online GA classes are available to "treat" addicts, with more than 500 outpatient beds provided annually. Nevertheless, the increasing number of individuals seeking help overwhelms the limited resources available, leaving many in desperate need without sufficient support. While fully aware of the numerous issues associated with betting, state authorities often find it challenging to regulate this lucrative industry, given the substantial revenue it generates. Notably, approximately $3.4 billion in annual budget revenue has been projected from sports betting since 2018.

Recently, New Jersey became the first state to impose a mandate requiring legitimate betting operators to monitor user data for signs of problem gambling. Regulators in Ohio and Massachusetts have also taken steps to address misleading advertisements and ensure consumer protection. Additionally, seven major sports leagues, including the NBA and NFL, which greatly benefit from betting-related advertising, formed an alliance this year to delineate advertising limits.